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CS Professional · CSR and Social Governance · Financial and Non-financial Reporting of Different Non-Corporate Entities

Shree Ganesh Cultural Society, a non-profit society with no commercial activity, records only cash and bank movements during the year. At year end it wants a statement summarising all cash and bank receipts and payments, classified by nature, irrespective of the period they relate to. Which statement does this describe?

The statement is the Receipts and Payments Account. It summarises actual cash and bank receipts and payments of the period, classified by nature, whatever period they relate to. The Income and Expenditure Account differs because it follows the accrual basis and shows surplus or deficit.

  1. AReceipts and Payments AccountCorrect
  2. BIncome and Expenditure Account
  3. CBalance Sheet
  4. DTrading Account

Explanation

A Receipts and Payments Account is a summary of cash and bank transactions for the period, classified by nature, regardless of the period to which they relate. An Income and Expenditure Account, by contrast, is prepared on accrual basis and shows surplus or deficit.

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